The rare earth supply chain used for permanent magnets and high-tech manufacturing remains concentrated in China, with the country accounting for around 60% of global rare earth mining production and about 85–90% of worldwide processing capacity. That concentration has created a strategic dependency for manufacturers across Europe, North America and other regions. In this context, Brazil’s Viridis Colossus Rare Earth Project is positioned as a potential source of non-Chinese rare earth supply.
Viridis describes Colossus as more than a conventional development, citing favorable geology, advancing permitting and growing financial backing. The company has also outlined a commercial approach directed toward Western markets. The project’s progress in 2026 includes permitting steps and the commissioning of a processing facility in Poços de Caldas.
Ionic adsorption clay deposit targeted for lower-cost processing
A key differentiator for Colossus is the deposit style it targets: an ionic adsorption clay deposit. Viridis contrasts this with many rare earth projects that rely on hard-rock mining and associated crushing, grinding and chemical processing. The company says the clay-based approach is designed to reduce operating complexity and environmental impacts relative to more conventional methods.
In ionic adsorption deposits, weathering over millions of years releases rare earth elements from underlying rocks and allows them to attach loosely to clay minerals near the surface. Viridis states that extraction can be carried out using ion-exchange techniques with solutions such as ammonium sulfate or magnesium sulfate. This differs from approaches where elements are trapped inside hard mineral structures.
The project’s stated processing advantages include minimal crushing and grinding requirements, no high-temperature roasting or acid baking, lower energy consumption, reduced capital investment and lower-cost processing reagents. Viridis also links the deposit type to a smaller environmental footprint. These characteristics are presented as reasons for increasing international attention on ionic clay resources.
Poços de Caldas alkaline complex hosts the Colossus deposit
The Colossus deposit is located within the Poços de Caldas alkaline complex in Minas Gerais. The broader region has an established record of mineral production, including niobium, bauxite and uranium. Viridis says the geological setting supports rare earth enrichment through ancient alkaline intrusions combined with tropical weathering.
According to the project description, thick clay horizons have formed containing concentrations of magnet rare earth elements. Viridis says these conditions resemble some of China’s more productive mining districts in terms of how magnet rare earths are hosted. The company’s focus remains on developing those magnet-relevant elements for downstream demand.
2026 milestones include preliminary licensing and a processing centre
As of 2026, Viridis reports milestones intended to reduce project risk and support investor confidence. One of the principal developments is obtaining a preliminary environmental license in Minas Gerais. Viridis characterizes this as the first major approval within Brazil’s environmental permitting framework for the project.
The next permitting step is securing an installation license that would authorize construction activities. Viridis notes that environmental approvals in Brazil can be lengthy and complex while pointing to an industrial history in Poços de Caldas as a favorable backdrop. The company is targeting a Final Investment Decision (FID) during the second half of 2026.
A separate milestone in 2026 is the launch of a research and processing centre in Poços de Caldas. Viridis says the facility can produce physical material for customer evaluation rather than limiting work to laboratory testing. It can process up to 100 kilograms of ore per hour, producing mixed rare earth carbonate samples for potential buyers.
Mixed rare earth carbonate focuses on neodymium and terbium
The mixed rare earth carbonate produced at the Poços de Caldas centre contains commercially important elements, particularly neodymium and terbium. Neodymium is described as the primary component used in neodymium-iron-boron (NdFeB) magnets. Those magnets are cited as essential for electric vehicle motors, wind turbines, industrial robotics, automation systems and defense technologies.
Terbium is described by Viridis as being used in smaller quantities but playing a role in improving magnet performance at high temperatures. The company links terbium to electric vehicle drivetrains, aerospace technologies and demanding industrial applications. Viridis also states that electrification-driven demand is expected to remain strong for decades.
EFA conditional support and planned financing timing
Project financing remains central to whether Colossus reaches production, according to Viridis’ disclosures. Export Finance Australia (EFA) has issued a conditional letter of support worth up to A$77 million. Viridis states that this does not represent final funding approval but indicates confidence in overall viability.
The company says export credit agency involvement can act as a signal to commercial lenders because those institutions conduct due diligence before participating in financing discussions. Current estimates place total funding needs between US$360 million and US$370 million, with potential escalation to US$400 million if additional contingency funding is required. Viridis aims to finalize financing during the third quarter of 2026.
Western customer strategy outlined alongside development risks
Viridis has indicated it intends to prioritize European and American customers for Colossus output. The company states it does not plan to sell production into Chinese supply chains, instead pursuing direct relationships with Western manufacturers seeking reliable and diversified sources of critical minerals. Viridis frames this approach as aligned with efforts by Europe and the United States to reduce dependence on Chinese critical mineral processing.
The company says targeting Western customers directly is intended to secure stronger pricing, reduce intermediary dependence, strengthen financing opportunities and support supply chain diversification efforts. Separately, Viridis lists risks that could affect outcomes during development and scale-up.
The risks cited include rare earth price volatility driven by China’s dominant position; permitting and regulatory delays tied to completing required environmental approvals; capital cost inflation related to infrastructure, water management systems, reagent supply chains and tailings facilities; and commercial scale-up challenges when moving from pilot operations to full throughput levels. Additional assessments, public consultations and government reviews are identified as potential drivers of timeline changes.
Brazil’s critical minerals position highlighted through Minas Gerais development
Viridis describes Brazil as having some of the world’s largest but underdeveloped rare earth resources across multiple geological environments capable of supporting long-term production growth. Within Brazil, Minas Gerais is presented as offering additional development advantages due to established mining infrastructure, an experienced workforce, reliable power supply and transportation networks.
The company says these factors can reduce development risk compared with more remote jurisdictions. Against that backdrop, Viridis characterizes Colossus as among the strategically important rare earth developments advancing outside China. It also states that if financing, permitting and construction proceed as planned, Colossus could contribute to diversifying global rare earth supply chains supporting advanced manufacturing needs.
